Foreign investors scooped up Korean Treasuries last year as Korean debts emerged as relatively safer assets compared to those in slumping Europe and the U.S., data showed Monday.

The outstanding amount of South Korean Treasuries held by foreigners reached 61 trillion won ($53.1 billion) at the end of last year, up 27.8 percent from a year ago, according to the data by the Korea Exchange.

The proportion of foreign investors in the Korean bond market stood at 15.6 percent.

Foreign investors’ won-denominated debt holdings have trended upward from 20.1 trillion won in 2008 to 47.7 trillion won in 2010.

Also their proportion in the local bond market rose from 7 percent to 13.3 percent in the same period, the data showed.

As offshore investors were battered by the debt-ridden eurozone and a U.S. economic downturn, they opted to flee for safer assets and considered the emerging markets, including Korea, the right place to make bets, the KRX said.

The trading volume of the benchmark Treasuries surged 128.3 percent to 712.8 trillion won, also reaching a record high.

The demand on government bonds with a five or 10 year maturity shot up as much as two-fold as investors sought after long-term bonds in a low-rate market, according to the data. 

(Yonhap News)